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August 17, 2010
Common Mileage Reimbursement Policies

In a BLR webinar entitled "Mileage/Commuting Expenses: How to Avoid Big Mistakes With These Employee Expenses," Mark E. Tabakman, Esq., partner in the nationwide law firm Fox Rothschild, LLP and Stacy Wade, Ph.D., CPA, assistant professor of accounting at Western Kentucky University, explained that there is no federal law that requires an employer to provide a mileage reimbursement to any employee using his/her personal vehicle for work-related travel.

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However, most employers do reimburse employees at, or near, the Internal Revenue Service (IRS)-approved allowance (currently set at 50 cents per mile).

Many employers also reimburse employees for parking and toll charges, as long as they submit receipts or specific information about those expenses.

According to BLR's Survey of Employee Benefits:

  • Sixty percent of employers that have established a mileage allowance for work-related automotive travel pay within two cents of the full IRS-approved allowance (50 cents per mile).
  • Sixty four percent typically increase their mileage allowance rate when the IRS raises its allowance.

Mark E. Tabakman, Esq., is a partner in the nationwide law firm Fox Rothschild, LLP (www.wagehourlaw.foxrothschild.com). He advises clients throughout the country on all aspects of labor relations and employment law, as well as the development of corporate employment policies. Stacy Wade, Ph.D., CPA, is assistant professor of accounting at Western Kentucky University (www.wku.edu). She teaches undergraduate and graduate courses in financial accounting and taxation.

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